Keys to the transformation of new payment methods

The last two years have caused that, after the efforts to stay open, restaurants and hotels have a much more demanding clientele and that the sector has to renew its proposal of payment methods to adapt to the needs of the market. Adyen has analyzed the key elements that condition the transformation and digitization of the hospitality sector within the Spanish industry to understand the direction and transformation of payments.

The latest Adyen report on M‘Métodos de Pago 2022’ revealed that only 33% of restaurants in Spain offer deferred payment alternatives, an option that is increasingly in demand. In turn, we are beginning to see how hotel deferred payment bookings are becoming more and more of an option for consumers.

In fact, half of the hotels in Spain already allow deferred payment (50%) in order to reach a larger number of customers. The number of people who opt for this alternative in Spain is 33%. When analyzing this payment method by sector, we can identify that it is most commonly used in household appliances (24%), electronics (19%) and travel (15%).

In turn, the Adyen Retail 2021 Report showed how 24% of users would like restaurants to use the technology a to improve their experience, for example, by implementing self-service kiosks or pay-at-the-table technology. However, this requires adopting more advanced technology to lead the change and have a greater competitive edge.

TOKENIZATION, GREATER FLEXIBILITY

Although Spain is one of the most advanced countries in terms of digitization, it is not so advanced in terms of payments due to the regulations. Hotels know that they cannot ask for card data over the phone or take them physically, but these behaviors are still being carried out. The pandemic has caused many sectors to digitize their payment experiences and adopt new habits, such as having a QR code instead of a printed menu, or allowing payment through e-wallets to reduce physical contact. However, much remains to be done.

To this end, the tokenization, which favors the reduction of exposure of sensitive card data, is fundamental. How does it work? A hotel guest's card details are captured during their online booking, or at check-in, and the data is encrypted and replaced with a secure token. This token can be used for all subsequent purchases. In fact, it can release huéspedes from their cards for the entire experience.

Thanks to the token, it is possible to activate any device that has a NFC tag, whether it is a wearable, an access card or a room key. The guest may use it to pay. This makes it easy to purchase extras at a hotel, such as booking treatments, without having to present a card, enter a code or sign a bill.

PERSONALIZATION AND LOYALTY

In Adyen's report on ‘MéTodos de Pago 2022’ we found that práAlmost 70% of respondents believe that companies should offer incentives through their payment method in order to build user loyalty. In addition, 23% of respondents said they would not mind their favorite merchant remembering their payment method to take advantage of discounts or loyalty benefits.

 Within the industry, hotels and restaurants can reward the most loyal consumers through payment methods. Some of the main advantages are that it dispenses with more traditional loyalty formats, such as voucher stamps, which can be archaic and thus does not force the user to download unnecessary applications that slow down or hinder the entire purchasing process.

At the same time, in this way, it is possible to capture highly valuable information for the hotel or restaurant, offering the possibility of having full knowledge of its clientele.

Adyen does not offer the consumer's card data, but an identifier assigned to a specific alias. In this way, companies do not need to create loyalty programs, but can know the number of purchases of a specific person across their network to offer rewards or discounts.

SECURITY TOOLS

Adyen manages authentication through solutions such as 3DS2, creating better experiences and reducing fraud. Consumers access a simple step in the payment process to allow the issuing bank to check if they are who they say they are or, in some cases, skip authentication due to established exceptions.

The level of fraud depends on many factors, such as the country in which it is sold, the amount and type of product sold, or the level of data shared with the payment provider. The payment methods used and the way they are managed are essential to reaffirm the security of a business and that the consumer can buy with total security, regardless of their origin.

In short, the offer of different purchasing methods is a reality for the user and in general for the market. We are moving towards a system that is more digital, more easy, and, in short, more customizable on the multiple payment options demanded by each user. For this reason, the Spanish hospitality industry has adopted innovation and technology in its transformation to be able to offer, as one out of every three companies currently assures, all the payment options that its customers wish to use in a world as globalized, uncertain and changing as the present one.